OREANDA-NEWS.  Fitch Ratings has affirmed the ratings of 24 tranches of one Maxis and 13 SMHL Maxis transactions. The transactions are securitisations of Australian conforming residential mortgages originated by Members Equity Bank Pty Ltd (ME Bank). The full list of rating actions can be found at the end of this commentary.

KEY RATING DRIVERS
The affirmations reflect Fitch's view that available credit enhancement is sufficient to support the notes' current ratings, our expectations of Australia's economic conditions, and the fact that the credit quality and performance of the loans in the collateral pool have remained in line with expectations.

Per the criteria, the default model was only run for seven transactions; Maxis Securitisation Fund 2009-1; SMHL Securitisation Fund 2008-2; SMHL Securitisation Fund 2009-2; SMHL Securitisation Fund 2009-3; SMHL Series Securitisation Fund 2010-3; SMHL Securitisation Fund 2011-1; and SMHL Series Securitisation Fund 2011-2.

At September 2015, Maxis 2009-1 had the highest levels of 30+ day arrears at 9.2%, while SMHL 2014-1 had the lowest levels of 30+ day arrears at 0.9%, compared to Fitch's Dinkum RMBS Index of 1.12%.

Performance of all SMHL & Maxis transactions has been within Fitch's expectations, with minimal levels of defaults and losses. All transactions are covered by mortgage insurance, with policies provided by Genworth Financial Mortgage Insurance Pty Ltd (Insurer Financial Strength Rating: A+/Stable), HLIC and QBE Lenders' Mortgage Insurance Limited (Insurer Financial Strength Rating: AA-/Stable). To date, all losses not paid by the mortgage insurers have been covered by excess spread.

RATING SENSITIVITIES
Sequential pay-down has increased credit enhancement for the senior notes of each transaction, with the 'AAAsf' rated notes able to withstand many multiples of the latest reported arrears.

The ratings are not expected to be affected by any foreseeable change in performance. Most of the ratings are independent of downgrades to the LMI providers' ratings, with the exception of the Class AB notes of SMHL Securitisation Fund 2012-2.

DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.

DATA ADEQUACY
Fitch conducted a file review of 10 sample loan files focusing on the underwriting procedures conducted by ME Bank compared to its credit policy at the time of underwriting. Fitch has checked the consistency and plausibility of the information and no material discrepancies were noted that would impact Fitch's rating analysis.

A comparison of the transaction's representations, warranties and enforcement mechanisms (RW&Es) to those of typical RW&Es for this asset class is available by accessing the reports and/or links under Related Research below.

The rating actions are as follows (as at latest reporting):

SMHL Securitisation Fund 2008-1:
AUD17.9m Class A1 (ISIN AU0000SHFHA2) affirmed at 'AAAsf'; Outlook Stable; and
AUD7m Class A2 (ISIN AU3FN0006383) affirmed at 'AAAsf'; Outlook Stable.

SMHL Securitisation Fund 2008-2:
AUD46.4m Class A1 (ISIN AU3FN0007241) affirmed at 'AAAsf'; Outlook Stable.

SMHL Securitisation Fund 2009-1:
AUD52.3m Class A2 (ISIN AU3FN0008215) affirmed at 'AAAsf'; Outlook Stable.

SMHL Securitisation Fund 2009-2:
AUD113.7m Class A (ISIN AU3FN0009189) affirmed at 'AAAsf'; Outlook Stable; and
AUD27.7m Class AB (ISIN AU3FN0009197) affirmed at 'AAAsf'; Outlook Stable.

SMHL Securitisation Fund 2009-3:
AUD77.6m Class A1 (ISIN AU3FN0009544) affirmed at 'AAAsf'; Outlook Stable; and
AUD16.5m Class AB (ISIN AU3FN0009551) affirmed at 'AAAsf'; Outlook Stable.

SMHL Securitisation Fund 2010-1:
AUD65.8m Class A bonds (ISIN AU3FN0010286) affirmed at 'AAAsf'; Outlook Stable; and
AUD17m Class AB bonds (ISIN AU3FN0010294) affirmed at 'AAAsf'; Outlook Stable.

SMHL Securitisation Fund 2010-2E:
AUD143.4m Class A3 (ISIN AU3FN0010963) affirmed at 'AAAsf'; Outlook Stable; and
AUD33.6m Class AB (ISIN AU3FN0010971) affirmed at 'AAAsf'; Outlook Stable.

SMHL Series Securitisation Fund 2010-3:
AUD149.2m Class A2 (ISIN AU3FN0011706) affirmed at 'AAAsf'; Outlook Stable; and
AUD15.4m Class AB (ISIN AU3FN0011714) affirmed at 'AAAsf'; Outlook Stable.

SMHL Securitisation Fund 2011-1:
AUD194m Class A (ISIN AU3FN0012720) affirmed at 'AAAsf'; Outlook Stable; and
AUD14.5m Class AB (ISIN AU3FN0012738) affirmed at 'AAAsf'; Outlook Stable.

SMHL Series Securitisation Fund 2011-2:
AUD145.1m Class A (ISIN AU3FN0014296) affirmed at 'AAAsf'; Outlook Stable; and
AUD13m Class AB (ISIN AU3FN0014304) affirmed at 'AAAsf'; Outlook Stable.

SMHL Securitisation Fund 2012-2:
AUD181.9m Class A1 (ISIN AU3FN0016598) affirmed at 'AAAsf'; Outlook Stable;
AUD80m Class A2 (ISIN AU3CB0199420) affirmed at 'AAAsf'; Outlook Stable; and
AUD32m Class AB (ISIN AU3FN0016606) affirmed at 'AAAsf'; Outlook Stable.

SMHL Series Securitisation Fund 2013-1:
AUD597.6m Class A notes (ISIN AU3FN0020665) affirmed at 'AAAsf'; Outlook Stable.

SMHL Series Securitisation Fund 2014-1:
AUD862.1m Class A notes (ISIN AU3FN0024055) affirmed at 'AAAsf'; Outlook Stable.

Maxis Securitisation Fund 2009-1:
AUD20.5m Class A1 (ISIN AU3FN0009114) affirmed at 'AAAsf'; Outlook Stable.